Analyzing and choosing the right credit card rewards

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » Analyzing and choosing the right credit card rewards

Analyzing and choosing the right credit card rewards


Updated: December 26, 2012

Add to Favorites:
All card companies compete for a share in the pie and will go to any lengths to offer bonuses and rewards in order to entice the customer to sign up for their rewards card. There would be cashback rewards offered on usage of the card. In such cases low introductory rates would be done away with in order to increase spending. Consumers are normally at a loss when it comes to making comparisons or analyzing before choosing the right card. For instance, if one card company offers 1% and the other offers 2%, one would obviously go for the 2%. This will not necessarily be the right choice in the world of earning points as there are always two sides to a coin which is earning points and spending them. Most often one would endlessly focus on earning points assuming that they will encash them later, but that rarely happens. Most often cardholders end up accumulating rewards points and rarely redeem them. Some of them feel good just looking at the rewards points that they have accumulated. Rewards programs are structured to suit each one's needs. So, one has to choose the card with the appropriate options. For instance, a person who travels extensively would benefit from travel rewards. There are basically 3 options for a person to choose from: • The cash option - here a percentage of cash is given back on all the purchases made in the card. This may be in the form of a check and after accumulation of a certain sum or this might come as statement credit. • The points earned - this entirely depends on the spending patterns (which is usually 1 point for every dollar spent). However, there might be different categories where one might earn more than one point. One can comparisons and calculate one point as equivalent to one cent. • Earning air miles - for this again one could calculate one mile per dollar spent and miles are given depending on the spending. It works like the points card but the air miles earned can only be redeemed on travel. One could accumulate rewards such as cash, miles or points. Some cards such as the travel credit cards offer bonuses on new accounts where one can earn 25,000 or about 50,000 miles after spending certain sums within the stipulated time period. One should be aware that travel cards come with a high annual fee and this bonus that these cards offer are basically to offset that fee in a way. Other rewards might be a 5% earning on gas filled at specified gas stations or while making purchases at a supermarket. Sometimes certain cards can put a cap on the rewards that one can earn in one billing cycle. Customers have to watch out for that, as this could have a huge impact especially if all purchases are made on one card. Some cards offer sweeteners in ways that are not related to spending. For instance, certain cards would give away 100 thank-you points per billing cycle if one stays under the credit limit and pays bills on time.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

How to Earn on Black Friday Deals in 2017

How to Earn on Black Friday Deals in 2017

Posted: November 23, 2017

Black Friday is around the corner! Ready, steady, go! But before you go on a shopping spree to catch the jaw-dropping deals and discounts, make sure you maximize them. Did you know that you can not only save on Black Friday, but also earn? ... Continue reading
Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2017: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 20, 2017

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
Top 5 Cards for Travel from Our Partners Autumn 2017 – Expert Choice

Top 5 Cards for Travel from Our Partners Autumn 2017 – Expert Choice

Posted: November 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading